Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help with finance homework questions? Tony Robbins wealth strategy: save $300 per month from age 20 to age 30 (i.e. 10 years), and then you

Help with finance homework questions?

Tony Robbins wealth strategy: save $300 per month from age 20 to age 30 (i.e. 10 years), and then you stop making any monthly deposits, and you leave the account alone until you are 65 years old (i.e. leave it alone for 35 years).

1) if you make monthly payments of $300 for a time period of 10 years, what was the total amount you invested (not the FV, just the total amount you deposited)?

Answer: $36,000

2)

if you earn 8.000%(A), what is the value of your account at age 30. Careful: this is a black-diamond question You have monthly deposits (cash flows) but an annual interest rate

Answer in $, to two decimal places i.e. $x,xxx.xx

Answer: Got $40,345.97, it was wrong though. Help

3) At 65 years old, you have saved up a lot of money. Now, youre retired and want to take out a monthly annuity payment from the account, such that at age 95 the value of the account is zero. If you live to 96, youll move in with the kids. If the account still earns 8.000%(A), what is the monthly payment you can withdraw.

Answer: This is goes off of #2, but I got it wrong. Need help on this one. Please.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inside Company Valuation

Authors: Angelo Corelli

1st Edition

3319537822, 9783319537825

More Books

Students also viewed these Finance questions

Question

What were some of the team roles at Casper?

Answered: 1 week ago

Question

What were some of the team norms at Casper?

Answered: 1 week ago